Canada-based gold miner Agnico Eagle is confident that it will achieve its full-year production and cost guidance, CEO Ammar Al-Joundi said last week, reporting the company’s second-quarter results.

The NYSE- and TSX-listed miner produced 895 838 oz at an all-in sustaining cost (AISC) of $1 169/oz in the June quarter. The performance was led by strong production at its Canadian Malartic and LaRonde mines, in Canada, and Fosterville, in Australia.

For the full-year, Agnico Eagle is forecasting gold output of 3.35-million to 3.55-million ounces at an AISC of $1 200/oz to $1 250/oz.

Al-Joundi said strong second-quarter operational results, combined with higher gold prices, drove record operating margin and free cash flow for the third consecutive quarter.

“We generated over half of a billion dollars of free cash flow in the second quarter, supporting a significant strengthening of our balance sheet and increased returns to shareholder,” he said.

Meanwhile, Agnico Eagle continues to take a measured approach advancing key pipeline projects, including Detour Lake underground and Upper Beaver, where it is investing a combined $300-million over the next three years.

At Detour Lake, a 2 km exploration ramp is expected to be developed to a depth of 270 m to collect a bulk sample and to facilitate infill and expansion drilling of the current underground mineral resource.

At Upper Beaver, an exploration ramp and an exploration shaft are expected to be developed to a depth of 250 m and 760 m, respectively, to establish underground drilling platforms and collect bulk samples.

“These are great projects with great economics, with tremendous upside to expand and extend mine lives. They are straight down the fairway of what we do and what we've done. These are not new projects in countries we've never been to before, they are in our backyard and we've done our homework,” commented Al-Joundi.

Agnico Eagle also approved a supplemental exploration budget of $50-million for the second half of the year. The approval follows positive exploration results in the first half of 2024 at Canadian Malartic, Detour Lake and Hope Bay, showing potential to identify additional mineral resources.